Narrowing your School/Program Search
The following has been adapted, with permission from the author, from the upcoming book: Breaking Business School: A Military Veteran's Ten Step Guide to MBA Success.
MBA Overview
According to Merriam Webster: “A Master of Business Administration (MBA) is a graduate degree in business. An MBA typically involves the study of accounting, financial markets; and instruments, corporate strategy, negotiation, business ethics, statistical analysis, marketing; and management.” While this definition is technically accurate, it misses much of the degree’s true purpose. In short, an MBA is meant to set you up for the next stage of your career, whether it be starting a company, landing a job as an investment banker, or simply moving up the corporate ladder. The degree comes in multiple formats: full-time, part-time, executive, and online, each tailored to an individual’s specific objectives.
The vast majority of veterans in full-time MBA programs have recently separated from active duty and are using the degree to help them transition to the civilian world. However, some have worked in the private sector for a few years before starting school. Conversely, those in the other formats are usually already working and use the degree to strengthen their business acumen and add a qualification to their resume. Therefore, you must decide which type of program works the best for you.
Reasons to get a Full-Time MBA
A full-time MBA often requires a greater financial investment than other formats due to the tuition and opportunity cost of two-years' lost income while attending school full-time. The part-time formats allow you to continue working while pursuing the degree, which offsets some of the cost, but they still require a financial outlay. As with most investments, there is some risk involved. Committing to a full-time MBA program means that you are betting that the benefits you get from the degree will outweigh its costs, both financial and personal. However, this higher investment brings the opportunity for greater professional rewards.
Although getting a full-time MBA is not the best course of action for everyone, the degree has clear, universal benefits. As someone who went through the job search process both before and during my time at business school, I can speak to the benefits full-time programs provide. I refer to the most significant advantages as the three “E’s:” Education, Employment, and Experience.
Education
Do you know what the following abbreviations mean or how to calculate them: CAGR, EBITDA, NPV, IRR, and DCF? Can you read and understand an income statement, balance sheet, statement of cash flows? Have you ever read (not run) a 10K? If the answer to these questions is “yes,” you are ahead of most of your fellow veterans. If not, this knowledge forms the foundation of what you will need to understand to succeed in the corporate world. You will have these concepts drilled into you during your MBA in core classes like accounting and corporate finance. Additionally, you will be able to study concepts ranging from venture capital funding to corporate valuation to impact investing. While you can certainly study this material on your own, learning it in a structured, immersive environment has clear advantages.
Employment
You may be asking yourself: when there are so many good career options for veterans leaving the military, do I really need an MBA? Going to business school full-time will help you professionally in several ways. You typically have a higher starting salary with an MBA, you will have more job options available to you, and you will be better prepared for your interviews.
Although your post-MBA salary varies with the type of job you take, generally speaking, you can generally expect to make about twenty to thirty-percent more if you have an MBA from a top program than if you enter the private sector straight from active duty. You will also have greater access to both corporate recruiters and potential investors if you plan on starting a company. The higher ranked your program, the more actively these individuals will make themselves available to you. Firms like McKinsey, Goldman Sachs, and Amazon regularly host recruiting events and veteran-focused meetings and dinners for students at select business schools. Likewise, prospective investors often put on start-up pitch competitions for MBA student-entrepreneurs. You cannot get this level of access to both companies and capital outside of a prestigious, full-time MBA program.
One more consideration is that, even if you are lucky enough to get recruited by a top firm straight out of the military, you will have a steep learning curve to get up to speed for its demanding interviews. However, if you go to business school, you will learn what you have to know to succeed through the interview process. You will also have industry-focused clubs and a career services office at school that will help you prepare for these interviews. On the other hand, you will have to do the bulk of your job hunting and interview preparation on your own if you do not attend a full-time program.
In my case, I saw the value of my full-time MBA firsthand when comparing my experience recruiting right after leaving the military and during my MBA. I went to the Service Academy Career Conference (SACC) and worked with some military placement firms. My background as a nuclear submarine officer got me attention from prestigious companies including, McKinsey, the Boston Consulting Group, Google, Bridgewater Associates, and Morgan Stanley. None of these interviews resulted in a job offer. However, I got both an internship and a job at McKinsey while I was at business school. I have the same raw IQ now as I did when I left the military. Why did I get a job offer from McKinsey now and not before?
When I interviewed for jobs immediately after leaving the military, I did not understand EBITDA, nor could I calculate Net Present Value or a break-even point. I felt like I was drinking from a firehose as I attempted to learn business basics on my own. By contrast, my interviews during my MBA were much smoother because I knew what I was talking about and had prepared tirelessly with my classmates. To be clear, I do have friends who have broken into top consulting and tech firms without an MBA, so it is definitely possible. But these people are fewer and far between than those who got these roles from business school. Full-time MBA programs set you up for success in your job interviews, especially with highly selective companies.
Experience
When I started my MBA, I remember thinking: “I have the next two years to focus on developing myself.” Going to business school full-time is one of the only times where it is professionally acceptable to take a couple of years off from the corporate grind. As a student, you can participate in various activities, from sports to musical theater to technology conferences. You can travel to foreign countries on global business ventures and learn about diverse career fields from investment banking to social entrepreneurship. In my case, I used my time at Wharton to participate on the school’s rugby and boxing teams and lead a sailing venture in New Zealand. I would never have had the opportunity or time to participate in these activities had I not pursued my MBA. This time to decompress and expand your horizons is hugely beneficial as you enter the civilian world.
You also will get the chance to a diverse group of people who are very different from those you knew when you were in the military. These individuals will broaden your horizons from the world you knew in the military. They will also be the core of your professional network that will be a resource to you both at school and after graduation.
Part-Time MBA formats
As previously discussed, MBAs come in several varieties: full-time, part-time, executive, and online. I earned a part-time Master of Science in Finance (MSF) from Georgetown University’s McDonough School of Business. So, I have a fairly good perspective on the benefits and drawbacks of the part-time programs. Part-time formats are geared towards people who want to strengthen their resumes, learn business fundamentals, and improve their position with their current employer. However, career services departments and recruiters tend to focus more on an MBA program’s full-time students than their part-time counterparts. If you are working full-time, you cannot pursue an internship, one of the best ways to get experience in a particular industry.
Excepting online programs, the price tag for each part-time program tends to parallel its full-time counterpart. However, you will not have to sacrifice two years of income while pursuing the degree, so there is no real opportunity cost. You are also eligible for similar veterans’ tuition benefits.
Here is a quick summary of each of these programs:
On-Campus, Part-Time MBA
As its name suggests, a part-time MBA is generally conducted on campus a few nights a week. Students typically receive the same curriculum as the school’s full-time program. They also have the benefit of spending time with their classmates in person, thus broadening their network. However, one generally has to live in the same city where the part-time MBA program is located, making this option more limiting. The on-campus option requires a substantial time commitment meaning that free-time will be scarce while completing the degree.
Executive MBA (EMBA)
These programs typically take place in week-long intensives or on weekends and are geared towards more experienced professionals. Like on-campus, part-time programs, EMBAs equip students with the same academic education they would receive in a full-time program. There is also the added benefit of being able to attend a program outside commuting distance. This flexibility makes these programs ideal for people who do not live in major cities or around top universities. However, as with part-time MBAs, completing coursework while working full-time is never an easy task.
Online MBA
Some schools, notably the University of North Carolina, Indiana University, and Carnegie-Mellon University, offer online MBAs. You can complete these programs anywhere and do not have to worry about commuting to class. I completed the first half of my Georgetown Degree in Washington, D.C., and the second half overseas. This flexibility does come at a price, though, as you lose out on the opportunity to get to know your classmates and broaden your network.
Should You Get an MBA on Active Duty?
Service members often ask whether they should pursue an MBA while they are on active duty. My answer is that it depends on what you are looking for with the degree. You will learn business fundamentals and be better prepared to enter the workforce once you separate from the military. However, you will miss out on many of the benefits you get from a full-time program. Depending on how much time you have left on active duty, you may not be able to leverage your school’s career services department to the same extent you would in a full-time program, and you will also most likely not be able to pursue an internship. So, if your goal is to use the degree to set yourself up in a new career when you leave the military, especially in banking, consulting, or tech, you should seriously consider a full-time program. However, if you are looking to learn business basics and check the box that you hold an MBA when you leave the military, getting the degree while you are on active duty is not a bad idea.
MBA Format Decision Key Take-Aways
Every MBA format has its unique benefits and drawbacks. There is no concrete answer as to which is best. That answer comes down to your individual goals and personal situation.
Generally speaking, you should target a full-time MBA program if you are looking for an immersive experience that will transform your career.
One of the part-time programs is not a bad option if you want to increase your academic knowledge and get a solid resume bullet but are not looking to change careers.
School Selection
Once you have decided that an MBA is right for you and researched various programs, it is time to decide which schools you would like to attend. In deciding on your top choices, you must ask yourself several questions: what career do I want to go into? Where do I want to live? And how much am I willing to pay for the degree? I call these elements “The Three C’s:” career, city, and cost. You should prioritize these three and focus on schools that best meet these goals.
The programs you consider should have a strong track record of placing their graduates in your top industry choices or in the region where you want to live. For example: if you are dead-set on investment banking, you should focus on highly ranked schools that have a track record of placing well in this competitive industry. If your priority is to pay as little as possible for your degree, you should look at state schools and those with generous veterans’ benefits. Finally, if you want to settle in a particular city or region, focus on schools in its vicinity.
After researching MBA programs and getting an idea of the scores you need to get into them, it is up to you to decide which of these fits your profile and goals. I recommend looking at a broad spectrum of schools and place them in several categories. Generally, you can categorize schools as “reach,” “50/50,” and “safety.” Reach schools are those where your GMAT and GPA are below average, and you have about a one-in-five to a one-in-ten shot of admission. Because of their selectivity, I would consider highly competitive schools such as Wharton, Stanford, HBS, Booth, Columbia, MIT, and Northwestern (referred to as the “M7”) to be reach schools for any applicant regardless of scores and background. A 50/50 school is exactly what it sounds like: one where your numbers are around its averages and thus have about a 50/50 shot of being accepted. A safety school is one where your numbers are above its averages, and you have upwards of an eighty-percent chance of admission. You should definitely put time and effort into researching your back-up schools because, even if you get into your top choice, one of your second choice schools may provide you with a scholarship that could make you choose to attend it.
When speaking to veterans about MBA admissions, I typically recommend applying to one to three reach schools, two to four 50/50 schools, and one or two safety schools. Therefore, you should develop a list of about four to eight schools of varying degrees of selectivity based on your priorities. You can then identify which of these are your absolute top choices. Narrowing your focus will allow you to set your GMAT goal and figure out how hard you need to study and any additional work you need to strengthen your profile. For example: if you target an M7 or you have a low undergraduate GPA, you will want to do all in your power to break 700 on that GMAT. If your goal is not quite as lofty, you may not have to stress out as much about the test.
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